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EMCOR Group, Inc. (NYSE:EME)
Beneish M-Score
-2.50 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

EMCOR Group, Inc. has a M-score of -2.50 suggests that the company is not a manipulator.

EME' s 10-Year Beneish M-Score Range
Min: -3.12   Max: -1.01
Current: -2.5

-3.12
-1.01

During the past 13 years, the highest Beneish M-Score of EMCOR Group, Inc. was -1.01. The lowest was -3.12. And the median was -2.47.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of EMCOR Group, Inc. for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0667+0.528 * 0.9675+0.404 * 0.9718+0.892 * 1.0196+0.115 * 0.9879
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0654+4.679 * -0.0099-0.327 * 1.043
=-2.50

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $1,309 Mil.
Revenue was 1652.585 + 1589.187 + 1714.796 + 1566.711 = $6,523 Mil.
Gross Profit was 239.527 + 216.929 + 248.573 + 222.229 = $927 Mil.
Total Current Assets was $1,938 Mil.
Total Assets was $3,418 Mil.
Property, Plant and Equipment(Net PPE) was $119 Mil.
Depreciation, Depletion and Amortization(DDA) was $74 Mil.
Selling, General & Admin. Expense(SGA) was $655 Mil.
Total Current Liabilities was $1,274 Mil.
Long-Term Debt was $308 Mil.
Net Income was 46.849 + 32.849 + 42.466 + 45.024 = $167 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 11.755 + -17.821 + 137.663 + 69.354 = $201 Mil.
Accounts Receivable was $1,204 Mil.
Revenue was 1552.918 + 1590.539 + 1649.279 + 1605.315 = $6,398 Mil.
Gross Profit was 220.241 + 216.203 + 236.871 + 206.562 = $880 Mil.
Total Current Assets was $1,888 Mil.
Total Assets was $3,405 Mil.
Property, Plant and Equipment(Net PPE) was $121 Mil.
Depreciation, Depletion and Amortization(DDA) was $75 Mil.
Selling, General & Admin. Expense(SGA) was $603 Mil.
Total Current Liabilities was $1,185 Mil.
Long-Term Debt was $326 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(1309.095 / 6523.279) / (1203.666 / 6398.051)
=0.20068052 / 0.1881301
=1.0667

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(216.929 / 6398.051) / (239.527 / 6523.279)
=0.13752266 / 0.142146
=0.9675

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1937.734 + 118.529) / 3417.786) / (1 - (1887.833 + 121.376) / 3404.895)
=0.39836403 / 0.40990574
=0.9718

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=6523.279 / 6398.051
=1.0196

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(74.717 / (74.717 + 121.376)) / (74.422 / (74.422 + 118.529))
=0.38102839 / 0.38570414
=0.9879

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(655.2 / 6523.279) / (603.147 / 6398.051)
=0.10044028 / 0.09427043
=1.0654

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((307.523 + 1273.965) / 3417.786) / ((326.084 + 1184.539) / 3404.895)
=0.46272294 / 0.44366214
=1.043

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(167.188 - 0 - 200.951) / 3417.786
=-0.0099

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

EMCOR Group, Inc. has a M-score of -2.50 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

EMCOR Group, Inc. Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.99711.1930.98090.76890.92951.180.94110.90991.040.9593
GMI 0.89280.93730.95040.90740.87891.04021.09321.02910.97940.9187
AQI 1.04250.92891.65481.02541.00780.81451.29890.94051.33850.9994
SGI 0.97761.06721.20921.14480.81760.87461.15691.13060.99791.0144
DEPI 0.92051.13910.92870.92711.00631.03380.92821.00780.97240.932
SGAI 1.05731.00650.94691.0121.14030.99430.94850.94951.0461.0636
LVGI 0.91920.98411.04630.93111.04370.85310.98050.94681.01121.0013
TATA -0.0442-0.0601-0.0814-0.0504-0.0665-0.0596-0.0062-0.0122-0.0076-0.023
M-score -2.74-2.57-2.47-2.83-3.12-2.71-2.25-2.49-2.37-2.67

EMCOR Group, Inc. Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.98411.04630.99791.03250.99460.92280.95670.96630.981.0667
GMI 1.00511.00010.99490.99320.97490.92210.90430.90590.92960.9675
AQI 0.94370.92661.29551.33851.32391.36420.99980.99941.00290.9718
SGI 1.08321.0351.01431.00521.0041.00861.00271.00711.00341.0196
DEPI 0.96810.98851.00070.97240.94550.91560.88670.9320.95270.9879
SGAI 0.96010.98421.02321.04991.05311.06371.06591.05971.08391.0654
LVGI 0.93620.96771.03041.01121.02020.98060.94461.00131.02181.043
TATA 0.009-0.0018-0.0243-0.0076-0.0252-0.0259-0.0055-0.023-0.028-0.0099
M-score -2.37-2.43-2.48-2.36-2.50-2.57-2.60-2.68-2.69-2.50
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